Sales at Irish-founded building materials company CRH for the first nine months of the year increased 13% to $24.4bn, and earnings before interest tax, depreciation and amortisation (EBITDA) rose 14% to $4.2bn.
The company said in a trading update that its EBITDA margin of 17.1% represented an increase of 10 basis points year-on-year, crediting "resilient demand, strong pricing and continued delivery from our integrated solutions strategy."
Price increases in CRH's American materials business offset lower activity levels caused by uncertain weather, with sales up 18% year-on-year and earnings rising 8% on the back of enhanced paving, construction services and cement sales
European activity was hit by rising energy prices, resulting in no sales growth, and a 9% decline in Q3, and earnings fall 6%.
CRH has implemented price increases across the board in the UK and Ireland this year, with improved activity levels in Ireland pushing sales and earnings. Higher prices also pushed sales in eastern, northern and western Europe, although earnings were either stagnant or in decline in some European markets.
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The firm's building products division, which covers architectural, infrastructure products and construction accessories, saw strong annual sales growth of 27% and earnings growth of 57% due to demand for utility infrastructure and outdoor living solutions as well as recent acquisitions.
CRH now expects to report full-year earnings of $5.5bn, some $500m ahead of the $5bn made in 2021, and tax before profit ahead of last year's $3.1bn.
The company said it is well position to delivery shareholder value next year despite the uncertain economic environment due to its "relentless focus" on margin expansion, cash generation and returns enhancement.
Net debt is forecast to total $5.2bn at the end of the year, an improvement from the $6.3bn reported at the end of 2021, and the company expects to complete a further $300m in share buybacks before the end of the year.
The group has completed 21 acquisitions for a combined investment of $3bn to date this year, with a further $300m going on expansionary capital expenditure projects. CRH has earned $3.7bn from divestments and disposals.
"Notwithstanding a challenging and volatile cost environment, I am pleased to report further growth in sales, EBITDA and margin during the first nine months of the year," said Albert Manifold, CEO of CRH.
"This performance reflects the resilience of our business and the benefits of our integrated and sustainable solutions strategy. The strength of our balance sheet combined with our relentless focus on disciplined capital allocation provides further opportunities to create value for all our stakeholders.
"Looking ahead to the remainder of the year we expect to deliver full-year EBITDA of approximately $5.5bn representing another year of progress for the Group."
Photo: Albert Manifold. (Pic: Sam Boal/RollingNews.ie)
